Press Release
Chittagong, April 18, 2006: The Securities and Exchange Commission now awaits the government’s response to key reform proposals it placed seeking real teeth to ensure corporate practice and financial transparency as well as to protect the investors’ interest said, Mr. Faruq Ahmad Siddiqi as the new Chairman of the Securities and Exchange Commission while addressing his speech as Chief Guest in two day training program jointly organized by SEC and CSE for the authorized representatives of Chittagong Stock Exchange today at CSE Conference Hall.
|
The commission is also working on revision of Company Law, establishment of auditors’ oversight board, establishment of capital market institute and liquidation of delinquent companies. |
CSE President Mr. MKM Mohiuddin, President of Chittagong Stock Exchange is speaking at the training program organized for Authorized Representatives of CSE Members on 19th April, 2006 at CSE Conference Hall |
‘We have brought a good number of necessary changes in the regulations but there are other issues that should be addressed to have a sound capital market,’ said Mr. Siddiqi, as the 6th chairman of the SEC, while elaborating his speech. He further said, the country’s securities market achieved remarkable growth in the last couple of years.
He said the market witnessed a significant improvement in corporate practices with the number of listed companies defaulting on annual general meetings and submission of audited accounts going down gradually.
In January 2004, the numbers of companies that failed to hold AGMs and furnish
audited accounts were 41 and 38 respectively, which dropped to 24 and 22 in
January 2006.
The commission published a brochure on rights of shareholders, issued the corporate governance guidelines and revised the rights issue rules to protect the investors’ interest, said SEC Chief listing major achievements of SEC.
Mr. Abbas Uddin Khan, FCA while addressing his speech as special guest in the occasion said, SEC introduced rules of mandatory conversion of private limited companies into public limited ones if they reach paid-up capital of Tk 40 crore and initial public offering for companies having paid-up capital of at least Tk 50 crore. To deepen the capital market, the commission also approved the direct listing regulations. Some necessary changes have been brought in the existing IPO rules, which approved very recently. The revised rules included a provision of preserving 10 per cent IPOs for mutual funds, a step seen as a major incentive for institutional investors.
Mr. MKM Mohiuddin, President of CSE, urged for Chairman’s cooperation regarding.
instituting of sub-broker regulations that help the inactive members of both CSE and DSE to start their activities in the share market and also help the existing active members to expand their own trading network to new traders and investors.
He sought for SEC’s direct supervision of exemption from BTTB multi-metering billing system from CSE brokers. He underscored for a tri-partite committee of SEC, CSE and DSE to reach consensus in permitting IPOs on the market. He requested SEC to its good office in expediting the implantation of the decisions of offloading Govt. shareholding in various local and multinational companies to the capital market. While speaking on re-introduction of Netting System, he said, Netting is a worldwide acceptable system of trading & settlement in the securities market. CSE first introduced netting system in our market. It had both merits and demerits given the immature market we had. However, as CDS has been established, and the market has become relatively stable by now, re-introducing netting system seems to be safe and of course good for both the exchanges. Because it will surely increase market liquidity and boost up turnover in both the markets at this falling market.
Mr. AB Siddique, Chief Executive Officer of CSE, in his speech expressed gratitude to SEC for making listing compulsory in both the bourses of the country in Public issue rules. This will benefit the investors for trading within the region of CSE.
Mr. Nasiruddin Ahmed Chowdhury, First Vice President of CSE made vote of thanks and CSE Vice President Mr. AQI Chowdhury OBE, CSE Directors Mr. Mirza Salman Ispahani, Mr. Abu Sayed Md. Shahidullah, Mr. Bijan Chakroborty, Mr. Tareq Kamal, Engr. Ali Ahmed, Mr. Amir Humayun Mahmud Chowdhury and Executive Directors of SEC Mr. Mansur Alam, Mr. Anwarul Kabir Bhuiyan, Mrs. Ruksana Chowdhury, Mr. Amohammad Abdul Hannan Zoardar and Mr. Farhad Ahmed were present in the occasion.
_________________________
For Chittagong Stock Exchange
